Michael Dularidze Khandaker Partners & Co. 14 Wall St, 30th Floor New York, NY 10005
P: (212) 513-1203 F: (212) 267-1085
Investment highlights: Pure H 2 0 Bio-Technologies, Inc. (PRHB)
- Clancy Environmental Consultants (CEC ), a nationally recognized microbiological / water expert laboratory, located in St. Albans, Vermont, evaluated the efficacy of iodine at low concentrations on three major waterborne bacterial contaminants. These included Escherichia coli , Enterococcus faecalis , and Pseudomonas aeruginosa . Treatment with low concentrations reduced the number of microbes by approximately 6 logs (99.9999% killed) within 5 minutes and 8 logs (99.999999% killed ) within 10 minutes.
- At least 12% of United States households treat their drinking water in some fashion and industry analysts expect this number to increase to 40% by the year 2010.
- The PRHB point-of-entry water treatment systems provide another layer of protection for individual homes, businesses and healthcare facilities in the event that municipal systems are unable to handle changes in operating or distribution conditions.
- World Health Organization has recommended the consideration of iodine for the control of cytomegalovirus (CMV) retinitis which is the most common cause of vision loss in HIV-positive patients, and that in the absence of effective antiviral medications, this form of retinitis is uniformly blinding, i.e., Povidone-iodine, an inexpensive and broadly acting anti-infective agent with both antibacterial and antiviral properties, may hold great promise for the future particularly in developing countries.
- PRHB was awarded the sum of $896,619.50 plus 6% interest until fully paid from the 17th Judicial Circuit, Broward County, Florida.
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Company description
Overview : Pure H 2 0 Bio-Technologies, Inc. ("Pure H 2 0", "PRHB" or "the Company") a Florida corporation, designs, develops, manufactures and markets potable water disinfection systems, particularly medical point-of-use, under-the-counter, whole house and well systems primarily used for commercial and residential applications. This emerging Company utilizes the technological advances in micro-biotechnology to improve the safety of drinking water. Pure H 2 0 has systematically and successfully addressed lead and other chemical and toxicological contamination, as well as waterborne disease agents such as Crytosporidium which can be difficult to treat by conventional means.
PRHB is a publicly held company specializing in the manufacturing, design and sale of its unique residential, commercial and hospital point-of-use potable water disinfection systems. These systems are specifically designed to work effectively against water-borne pathogens and remove heavy metals and objectionable biomass.
The PRHB point-of-entry water treatment systems provide another layer of protection for individual homes, businesses and healthcare facilities in the event that municipal systems become compromised with chlorine-resistant etiological agents. Researchers have long recognized the disinfection capability of iodine for over 170 years (Environmental Health Techniques in Rural Areas, Technische Universität Hamburg-Harburg, Germany, 1985 and W. Gottardi, University of Innsbruck, 1999). Historically, the concern has been to deliver the iodine in a manner that does not present a residual in treated potable water supplies. The PRHB technology provides a new water treatment option based on a system designed with both pre-and post-absolute carbon filtration used in combination with direct crystal iodine contact for disinfection. Moreover, the PHBT system is designed not to release detectable residual halogen into the disinfected water supplies. Both the iodine concentration and the contact time can be controlled independently of pH, and have demonstrated laboratory effective kill rates to a level of log 8 against microbial agents, as recent PRHB's test results confirm. Reminder: The CDC makes no recommendation as to the use of the portable filters on the market due to lack of independently verified results of their efficacy.
Sector
Market segments include residences, retail dispensing, educational facilities, hospitals, clinics, nursing facilities, commercial, agriculture, municipal facilitates, military bases, and cruise ships. All will need to be profiled and tested in order to confirm the served market potential. The company PRHB believes that it will be able to compete versus the individual technologies of UV light , granular activated carbon filtration membrane /hollow fiber media , ion exchange resins ,silver , chlorine and diatomaceous earth depth filtration systems by virtue of its intellectual property (patents) which stress the safety and efficacy of ozone –iodine –micron disinfecting water purification systems.
Product and Revenues
At least 12% of United States households treat their drinking water in some fashion and industry analysts expect this number to increase to 40% by the year 2010. In an earlier market assessment, health officials estimate that 900,000 people each year become infected with waterborne disease and the General Accounting Office estimates that 66% of Safe Drinking Water Act violations are not reported. These findings along with the evolution of chlorine-resistant organisms suggest that the demand for high purity water by end users will continue to increase.
US Markets
Housing Units 119,117,000 U.S. Census Bureau 2001
New Cancer Cases 1,444,920 ACS-NCI- SEER 2007
Nursing Facilities 17,800 NNH Survey 1998
Hospitals 6,000 American Hospital Association
Military Installations 580 88% domestic bases, 12% Foreign bases
Recreational Facilities 6,600,000 National SPA & Pool Institute
Technology Advantage
Corporate Highlight: Pure H 2 0's water disinfection systems are based on a unique halogen disinfection, specifically, Iodine or Tetrasilver Tetraoxide (Silver TTO TM ) filtration methodology. Both of Pure H 2 0's agents have been evaluated by independent U.S. environmental laboratories and demonstrate antimicrobial activity against E. coli , E. faecalis , and Pseudomonas indicator bacteria (Iodine) and Cryptosporidium oocysts (Silver TTO TM ).
Iodine (I 2 ) Water Treatment with low concentrations of I 2 reduced the number of microbes by approximately 6 logs (99.9999% killed) within 5 minutes and 8 logs (99.999999% killed ) within 10 minutes. This means that a concentration of more than 1 million bacteria was killed within these time periods by utilizing iodine as the disinfectant.
Silver TTO TM Water Treatment at low concentrations, activated by two different oxidizing agents, caused significant reductions in high concentrations of Cryptosporidium oocysts (highly resistant form of this waterborne parasite). Tests showed more than a 5-Log 10 reduction of E. coli (killed more than 100,000 bacteria) in 2 and 5 minutes.
Log 10 = Log base 10 is the number raised to the power of 10. Example: 10(1) = 10; 10(2) = 100; etc. and log reduction of 1= 90% reduction in the number, log of 2 = 99% reduction, and of log 3 = 99.9% reduction, etc. 6 log reduction means 1,000,000 killed 8 log reduction means 100,000,000 killed
The development of the product processes and related testing is completed. The Company has two (2) patents pending filed with the U.S. Patent office, Washington, D.C. in the areas of microbiology and mechanical engineering using an exclusive leading edge disinfection storage and dispensing process, in conjunction with granular activated carbon filtration, Pure H 2 0 has specifically developed a system to work effectively against water-borne pathogens and to remove heavy metals and objectionable biomass.
U.S. Patents and Trademark :
November 2003: Pure H 2 0 submitted New Provisional U.S. Patent Application for A Method to Control and Deliver Iodine Disinfection for Use in Water Treatment.
October, 2004 : Pure H 2 0 submitted New Non-Provisional U.S. Patent Filing for A Method to Control and Deliver Iodine Disinfection for Use in Water Treatment.
November, 2005 : Pure H 2 0 submitted New Provisional Filing of U.S. Patent Application for Tetrasilver Tetraoxide (Silver TTO TM ) as disinfectant for Cryptosporidium .
August, 2006 : Pure H 2 0 submitted New Non-Provisional U.S. Patent Filing for Tetrasilver Tetraoxide (Silver TTO TM ) as disinfectant for Cryptosporidium .
December, 2006 : Pure H 2 0 submitted a new U.S. Patent and Trademark Application for Silver TTO TM .
Independent U.S. Laboratories:
Clancy Environmental Consultants , Inc., (CEC) St. Albans, Vermont, USA: Pure H 2 0 engaged CEC to perform disinfection studies utilizing Silver TTO TM as an alternate disinfection technology. CEC has served the United States Environmental Protection Agency (EPA), American Waterworks Association (AWA) and private industry in an advisory and consultant capacity. It should be noted that very few laboratories in the world have the capability to test for efficacy against Cryptosporidium oocysts . For this reason, the Company chose CEC who is nationally/internationally recognized for their expertise in performing these tests and advising commercial and federal clients. The Company is confident that claims described in its patents for both microbiology and engineering fields will be verified, thereby placing it in an optimum position to claim a significant market share. Tests on Silver TTO TM were performed by CEC with progressive reports dated 12-30-04, 3-31-05 and 7-2-05. The studies concluded Silver TTO TM , used as a disinfectant, is a superior product that out performs halogens in the process of killing Cryptosporidium parvum oocysts and other protozoans such as Giardia lamblia , whose cysts or oocysts are chlorine-resistant .
U.S. Bio-Systems, Inc. (USBS) Boca Raton, Florida, USA: Pure H 2 0 also engaged USBS to manage its testing programs to ensure proper control, analyses and to maintain related data flow. USBS is the largest environmental testing laboratory in Florida, holding multiple state and federal certifications including the National Environmental Laboratory Accreditation Program (NELAC) and is known for its commitment to high standard Quality Assurance/Quality Control Programs.
NSF International, Inc. (NSF ) Ann Arbor, Michigan, USA: Pure H 2 0 is preparing to submit to the EPA for verification of its contained drinking water disinfection system through NSF. The Company and NSF have executed a confidentiality agreement.
Existing Water Treatment Limitations : Water treatment facilities, although operated correctly and remove the vast majority of microbial contaminants, can be breached by some recently emerging pathogens, as evidenced by the number of waterborne disease outbreaks, some of which affected thousands of people. This has created considerable concern for response to several driving factors:
* A dramatic increase in the number of cases of waterborne diseases caused by pathogens that emerged and became dominant during the 1990's.
* The need for added protection against potential bio-terrorism.
* Public awareness of waterborne outbreaks, e.g., Cryptosporidium (Milwaukee, 1993) and E. coli (Atlanta, 1998). There were 7,212 cases of cryptosporidiosis; 17,256 cases of giardiasis; 2,368 cases of E. coli O175:H7; 9,877 cases of hepatitis; and 1,952 cases of legionellosis during 2005, proving that the threat of outbreaks still exists.
* Growing population and industrial concentration in urban areas which increase the demand on existing treatment facilities.
* Population demographics – cancer and other immune-compromised population cohorts.
* The Centers for Disease Control and Prevention have estimated that there are on the order of 940,000 cases of waterborne enteric (intestinal) disease in the USA annually (GLF & Associates, 1993).
* Existing hyper-chlorine disinfection and carbon filter-based water treatment systems appear to have limits that suggest a need for improved potable water supplies in military installations or remote locations, residences, hospitals, nursing homes, day-care centers, commercial facilities, recreational facilities, cruise ships and hotels.
Developing Countries
World Health Organization has recommended the consideration of iodine for the control of cytomegalovirus (CMV) retinitis which is the most common cause of vision loss in HIV-positive patients, and that in the absence of effective antiviral medications, this form of retinitis is uniformly blinding, i.e., Povidone-iodine, an inexpensive and broadly acting anti-infective agent with both antibacterial and antiviral properties, may hold great promise for the future particularly in developing countries.
Biodefense – Etiological Agents
Category A
Anthrax
Botulism
Small Pox
Viral hemorrhagic fevers
Category B
Brucellosis
Salmonella , Ecoli 0157:H7 , Shigella
Staphylococcal Enterotoxin B
Vibrio Cholerae
Category C
Emerging Infectious disease - Hanta virus
Marketing Strategy
The Company plans to capitalize on the need for improved point-of-entry and point-of-use water treatment systems and on the need for a disinfection system that has the overall capacity for treating the emerging threat agents that are not killed by halogen-based/filtration systems. Although halogens such as iodine can be very effective in killing pathogenic bacteria, our intended use of a tetrasilver-tetraoxide (Silver TTO™) disinfectant is far superior for overall removal and/or killing of the newly emerging pathogenic strains.
The current point-of-use and point-of-entry systems are primarily based on carbon or fiber filters that merely entrap, but do not disinfect drinking water. The Pure H 2 0 technology system combines use of absolute micron carbon pre-and-post filters with controlled release of oxygenated tetrasilver-tetraoxide (Silver TTO™) to treat waterborne pathogens and remove heavy metals and objectionable biomass. The use of TTO in the system is a great improvement over use of halogenated compounds such as chlorine, bromine and iodine because it is capable of killing the oocysts of Cryptosporidium and cysts of Giardia with an already proven ability to destroy pathogenic bacterial and viral species, including Escherichia coli and waterborne viral species specified by the US Environmental Protection Agency (US EPA). The US EPA, for treatment of swimming pools, has already approved TTO for its efficacy on microbes. The US EPA has set a non-enforceable limit or standard in water for silver at 0.10mg/L. However, individual states may set their own limits. As a result, Pure H 2 0 has designed post-treatment unit that includes a silver absorbent to reduce residual silver for additional safety in its water disinfection system design. The Company plans to certify the system through NSF using updated NSF/ANSI standards.
The Company's strategy focuses on the Pure H 2 0 systems unique ability to provide disinfection in drinking water. Each system component has a specific performance feature that leads to direct benefits for the end user. Pure H 2 0 intends to utilize direct marketing approaches to effectively move the array of water disinfection and treatment products including: direct mail and cable television to enhance the sales efforts of distributors serving the residential market. The Company will utilize combinations of direct contacts along with consulting engineering groups to approach the commercial and residential market segments. These markets generally require a professionally designed drinking water system that fits a specific applications and criteria. Under-the-counter and whole-house systems will be marketed primarily through developers and home builders. Offering this product to developers and home builders provides home buyers with the option to an all-inclusive networked water disinfection system included in the purchase of the home. Pure H 2 0 has developed and designed a point-of-use disinfection system primarily for hospital use. These systems provide the necessary added protection for cancer and other immune-compromised patients.
Competition:
Competitors include: Brita, Culligan, Amway, Ecowater, Pur Plus, Teledyne, Omni, and Cuno. These competitor systems are designed to trap and filtrate water or reduce rates utilizing low volumes, thus have significant limitations such as bacteriostatic as opposed to biocidal capacity. Brita, the leading brand, controls 60% of the market with sales of $272 million. It has been growing at a double digit rate since the launching of its home filtration point-of-use pitchers in 1988.
Engineering and Financial Feasibility
An independent and certified engineering firm has performed an in depth feasibility study on Pure H 2 0. The study analyzed all publicly available aspects of the Company's technology, production, financial, management and marketing plan, etc., resulting in a strong recommendation by the firm to pursue the Company's goals.
Pure H 2 0's Product Design & Engineering:
· Dennis Boudreaux, P.E.
· Todd D. Stong, Ph.D, P.E.
· Craig M. Baker, P.E.
· Edward C. West, P.E.
Investment Opportunity
There is an enormous market opportunity for products that offer a combination of drinking water purification with advanced technology effectively disinfecting water from prokaryotic and eukaryotic microorganisms, neutralizing organic compounds, and removing undesirable particulates over a range of complex water constituents. As stated above, Tests confirmed that Pure H 2 O's potable water disinfection system achieved kill rates of 8 log and higher against a number of representative bacterial pathogens. Pure H 2 O has developed a well-defined strategy to implement its business model. Subsequently, the Company is positioning itself to be a viable investment opportunity.
Recent Note
PRHB was awarded the sum of $896,619.50 plus 6% interest until fully paid from the 17th Judicial Circuit, Broward County, Florida. The award reflects a unanimous jury verdict against Joseph A. Mazziotti and Louis J. Mazziotti, Kentucky, for Fraud, Breach of Contract and Money Lent and triple damages for Theft under Florida Statute 772.11
Conclusion
There are major players in the residential water treatment business include Chlorox (Brita) Proctor & Gamble (PUR) and Vivendi. The Brita and PUR technologies are mainly designed on porous iodine exchange carbon block filter to reduce microbial contamination of drinking water. Carbon Block filter designs are limited and fail to take into account the wide array of microorganism diameters depending on their life cycle. None have disinfection capability and most have limited filtration capacities whereas PRHB technology combines the use of absolute micron carbon pre and post filters with controlled release USP iodine to treat waterborne Pathogens and remove heavy metals and objectionable biomass.
Finally Pure H 2 0 Biotechnologies (PRHB) intends to become a major competitor capitalizing on the omnipresent need for improved point-of – entry water treatment systems.
Khandaker Partners Valuation Research may only be available to certain account holders, based on the payment of a service fee. Khandaker Partners has received a fee from the company under valuation coverage for producing and dissemination of the research reports including introduction to certain sophisticated investors and highly specialized financial institution that generally represent professional investor group. This material is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy. Additionally, Khandaker Partners Valuation Research, and the general guidance are not personal recommendations for any particular investor or client and do not take into account the financial, investment or other objectives or needs of, and may not be suitable for any particular investor or client. Before buying, investors and clients should consider whether the investment is suitable. Investors and clients should consider Khandaker Partners Valuation Research as only a single factor in making their investment decision while taking into account the current market environment. Accordingly, Khandaker Partners does not assess the suitability (or the potential value) of any particular investment. Khandaker Partners Valuation Research utilizes independent research data in the forming of a value. While Khandaker Partners believes the research is information is reliable, they do not guarantee its accuracy, timeliness or completeness. Khandaker Partners Valuation Research is generally updated quarterly, so you should review and consider any recent market or company news before taking any action. Stocks may go down as well as up and investors (including clients) may lose money, including their original investment. Past history is no indication of future performance and returns are not guaranteed. For customized research please contact Khandaker Partners at 212-513-1203. Khandaker Partners, Inc. is an independent research firm and does not engage in investment banking with any of its clients.
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another resource: wystar.com, stock industries, news releases, research. Current.
-------------------- The plans of the diligent lead to profit, as surely as haste leads to poverty. Ps 21:5 Posts: 2 | From: Pennsylvania | Registered: Mar 2007
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For some reason the link will have to be aquired through a search engine, it doesn't post. Perhaps I'll send it anyway. www.wystar.com, or http://savings.wystar.com
-------------------- The plans of the diligent lead to profit, as surely as haste leads to poverty. Ps 21:5 Posts: 2 | From: Pennsylvania | Registered: Mar 2007
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